AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

7/22/2024: Gold lower after Biden exit

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold edged down 0.1% to close at $2,392 as Treasury yields crept higher and risk appetite returned following President Bidens decision not to seek re-election. Silver added 0/1% to finish at $29.14 an ounce.

Submitting to pressure after an abysmal debate performance weeks ago, Joe Biden announced yesterday that that he would step aside and endorse Vice President Kamala Harris as the Democrat candidate for President.

The move, while not entirely unexpected, throws additional uncertainty into an already uncertain political landscape as traders wait to see whether Harris can galvanize her party. While betting markets still see a 60% chance of a Trump victory this fall, the odds have slightly shifted away from the former President following Bidens decision.

Benchmark 10-year Treasury yields crept up above 4.26% on expectations that another Trump term could be inflationary, given his promise to increase tariffs dramatically. Higher yields weigh on gold by increasing the opportunity cost for holding it instead of bonds.

Despite the uncertainty, risk appetite took over on Wall Street, especially in the rate-sensitive tech sector. The Dow rose 0.3% while the SandP 500 added 1.1%. The tech-heavy Nasdaq jumped 1.6%. The dollar was virtually unchanged.

Traders are awaiting new GDP data for Q2 on Thursday and PCE inflation data on Friday for further clarity on the course of interest rates.

Platinum and palladium dropped 1.8% and 1%, respectively.

At the New York spot close: gold inched down $3.50 to $2,392; silver rose 4 cents to $29.12; platinum shed $17.50 to $948.40; and palladium slid $9.50 to $892.80 an ounce.